NXP Semiconductors NV (NXPI): Are Hedge Funds Right About This Stock?

Seeing as NXP Semiconductors NV (NASDAQ:NXPI) has faced falling interest from the smart money, logic holds that there is a sect of hedgies who were dropping their positions entirely heading into Q4. At the top of the heap, Andreas Halvorsen’s Viking Global dumped the biggest position of the 700 funds followed by Insider Monkey, totaling an estimated $139.3 million in stock, and Aaron Cowen’s Suvretta Capital Management was right behind this move, as the fund cut about $80.5 million worth. These moves are interesting, as aggregate hedge fund interest was cut by 10 funds heading into Q4.

Let’s check out hedge fund activity in other stocks similar to NXP Semiconductors NV (NASDAQ:NXPI). These stocks are The Hershey Company (NYSE:HSY), United Continental Holdings Inc (NYSE:UAL), Brown-Forman Corporation (NYSE:BF), and Incyte Corporation (NASDAQ:INCY). All of these stocks’ market caps match NXPI’s market cap.

As you can see these stocks had an average of 37.75 hedge funds with bullish positions and the average amount invested in these stocks was $1,821 million. That figure was $3,189 million in NXPI’s case. United Continental Holdings Inc (NYSE:UAL) is the most popular stock in this table. On the other hand The Hershey Company (NYSE:HSY) is the least popular one with only 18 bullish hedge fund positions. NXP Semiconductors NV (NASDAQ:NXPI) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard UAL might be a better candidate to consider a long position.